COMMENTARY
Creating an innovation-based economy
By Lisa Gibson, Hawaii Science & Technology Council President
| |||
|
|||
Have you checked out The Hot Seat? It's our opinion-page blog that brings in your elected leaders and people in the news, and lets you ask the questions during a live online chat.
On The Hot Seat last week was Hawaii Science & Technology Council President Lisa Gibson. This is an excerpt from that Hot Seat session. To see the full conversation, go to The Hot Seat blog at www.honolululadvertiser.com/opinion and click on "On the Hot Seat: Hawaii Science & Technology Council President Lisa Gibson." (Names of questioners are screen names given during our online chat.)
Kevin: How do we know if the benefits of the tax credit for technology companies is working, since there is not a list of jobs created, and who filled those jobs? Are the local kids who left the Islands truly benefiting from any job creation, if there is such a thing? I think too often Hawai'i tries to copy things that Mainland cities do rather than appreciating that we are unique.
Lisa Gibson: According to Enterprise Honolulu, employment in Hawai'i's innovation industries is 27,234. Innovation industries produce 17 percent of revenues for the state with just 5 percent of the state's employment. This is why around the world communities and regions are focusing on local assets which can translate into growing an innovation-based economy. Hawai'i has significant unique assets in a range of science and tech sectors including ocean sciences, ag biotech, astronomy, aerospace/defense, info tech, life sciences, energy/environment, and film and digital media. Because Hawai'i's assets are spread across so many sectors, it has been difficult to gather more detailed information. The HSTC is working with both DBEDT and the Department of Taxation to bring more clarity to data collection across this range of sectors.
Now let me address your question about tax incentives. I presume you are referring to Act 221/215. There is much positive data already published by the Department of Taxation. Act 221/215 has been successful in generating capital investment, with $185.08 million invested between 2000 and 2003. During these years, the companies benefiting from this incentive created more than 4,000 jobs, generated $112,682,520 in salaries, and spent more than $263 million. Of this total investment, only $75.03 million has been claimed as a cost to the state. The purpose of Act 221 has been and continues to be to increase investment in Hawai'i's emerging science and tech companies. In order to create high-paying jobs, we first have to support the early-stage growth of Hawai'i's emerging innovation economy. Until this incentive, what was missing in Hawai'i was this early-stage funding.
The HSTC is also in the process of creating a Web site which will list available jobs in Hawai'i science and tech companies.
SusaninKailua: What is the council doing to support undergraduate science education at UH-Manoa? Have you seen the state of disrepair in Edmundson Hall?
How are we to populate the projected science-based careers without support at the undergraduate level?
Gibson: The core of growing an innovation economy is driven by research. UH has several outstanding research programs that are aligned with the various sectors, such as the School of Ocean and Earth Sciences, the John A. Burns School of Medicine, the School of Engineering, etc. Edmundson is just one example of improvements that need to be made in the research infrastructure at UH. If UH is going to continue to grow world-class research programs, the state must increase its investment in this important public trust.
With regard to undergraduate programs, we consistently partner with UH and other workforce development professionals to align undergraduate and industry needs. We are also partnering with the wider workforce community on a range of P-20 education system issues. We have a number of UH folks on our board. The more we can work together, the better aligned the programs will be to meeting the needs of industry and the community.
TechHarrison: We hear how government supports the tech industry, but how is the industry supporting Hawai'i? Do they give back to our schools and communities? Or do they put profits into fat salaries, as was reported on the company Hoku? Time for an honest conversation.
Gibson: We live in a complicated and increasingly competitive global environment. We all know science and technology hold much promise to solve many of the world's problems, ranging from healthcare solutions and environmental stewardship to creating sustainable sources of energy. The reason governments across the country and the world use incentives to catalyze the growth of science and technology companies is that not only do these companies bring important solutions for the future, they create high-paying jobs so that we can afford to live here. In addition, many of our tech companies are actively participating in programs like BottBall or Robotics to develop kids' interest in science and math careers.
Larry H.: What is being done to keep high-tech businesses and jobs here in Hawai'i? There are small tech startups that begin with the support from the local agencies and receive the tax incentives, but once they start growing, they outsource their work or move to a city on the Mainland or overseas.
Gibson: Larry, you have hit on a very important topic for Hawai'i's startup companies access to early-stage and later-stage capital. As Hawai'i's companies grow, the need for follow-on financing becomes more critical if we are going to keep these companies here. The council is actively pursuing solutions to create more follow-on funding.
The other issue you raise has to do with workforce development and access to talent. Again, the council, along with several government and industry partners, is very involved in seeking solutions. The range of workforce issues runs the gamut from short-term staffing needs to addressing the challenges of the public school system. It requires collaboration to be successful.
CAE: What are your thoughts on Gov. Lingle's STEM program in schools? Do you see this as a valuable tool in diversifying our economy and steering more future graduates into careers in technology and life sciences?
Gibson: CAE, great next question, and you are quite right. The governor's Science Technology Engineering and Math, STEM, is right on target. We as a community need to engage kids at all levels, P-20, to grow more science and math competencies. This is not only true for Hawai'i but for the entire country. Again, collaboration is critical.
Robert: What do you think needs to be done to keep our kids interested in science and technology?
Gibson: Issues include the need for more science and math teachers, scholarships, support for research and the development of more student internship and mentorship programs. Many of our companies already offer internships as well as other programs to engage youth.
WallyinAiea: Has the council thought of doing more on the high school level, such as summer tech camps, internships, mentoring programs? If we can create an excitement among our high school students, and if they can see opportunities here in Hawai'i, we might be able to hang on to more of our local talent.
Gibson: Wally, the council is a young organization, and we are just now beginning to coordinate with industry and other public and private partners on this issue. For example, our new Web site will have the capacity for companies to post internships, which we can then market to students.
Bill K: I don't understand what the council does. Is it tied to government? How are funds received? What is the goal? Why don't we hear anything about it?
Gibson: The Hawaii Science & Technology Council is a private-sector industry association supported by its members. Its mission is to accelerate the growth of Hawai'i's science and technology economy through service to its members through increased visibility, networking opportunities, and lobbying on legislation critical to the growth and success of industry. We also are involved in workforce development and have a group purchasing program to deliver savings to member companies.
We are a young organization which may be why you are not yet familiar with our work. Go ahead and visit www.hawaiiscitechcouncil.org.